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Marathon Oil's Second Quarter Earnings Report
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Marathon Oil (NYSE:MRO) announced its results for the most recent quarter on August 1, 2012. Marathon Oil is an oil and natural gas exploration and production company with operations in North America, Africa, and Europe.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Marathon Oil posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported adjusted net income of 59 cents per share versus the 66 cents per share estimate and revenues of $3.78 billion versus the $3.36 billion estimate. Revenue fell 2.1% from the same period last year. The company's net income for the quarter was $393 million. According to the reported number, this is down 60.5% from last year's figures. The company has now reported lower net income in each of the last four quarters.
Management Quote: "Throughout the second quarter, Marathon Oil continued to execute well and reported another good quarter operationally," said Clarence P. Cazalot Jr., Marathon Oil's chairman, president and CEO. "Our Exploration and Production (E&P) segment delivered production available for sale at the upper end of our guidance. Second quarter volumes in our Texas Eagle Ford play grew nearly 50 percent from the first quarter, leading to a 20 percent production increase from our U.S. unconventional resource plays compared to the first quarter, including higher production levels in the Company's North Dakota Bakken and Oklahoma Anadarko Woodford plays. We also completed major turnarounds in Equatorial Guinea (EG) and Norway ahead of schedule and under budget.
A Look Back: Net income has dropped 28.4% year-over-year on average across the last five quarters. Performance was hurt by a 60.5% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 97 cents a share to 71 cents over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $2.87 per share, down from $3.81 90 days ago.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Marathon Oil posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported adjusted net income of 59 cents per share versus the 66 cents per share estimate and revenues of $3.78 billion versus the $3.36 billion estimate. Revenue fell 2.1% from the same period last year. The company's net income for the quarter was $393 million. According to the reported number, this is down 60.5% from last year's figures. The company has now reported lower net income in each of the last four quarters.
Management Quote: "Throughout the second quarter, Marathon Oil continued to execute well and reported another good quarter operationally," said Clarence P. Cazalot Jr., Marathon Oil's chairman, president and CEO. "Our Exploration and Production (E&P) segment delivered production available for sale at the upper end of our guidance. Second quarter volumes in our Texas Eagle Ford play grew nearly 50 percent from the first quarter, leading to a 20 percent production increase from our U.S. unconventional resource plays compared to the first quarter, including higher production levels in the Company's North Dakota Bakken and Oklahoma Anadarko Woodford plays. We also completed major turnarounds in Equatorial Guinea (EG) and Norway ahead of schedule and under budget.
A Look Back: Net income has dropped 28.4% year-over-year on average across the last five quarters. Performance was hurt by a 60.5% decline in the most recent quarter from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 97 cents a share to 71 cents over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $2.87 per share, down from $3.81 90 days ago.
by
Investopedia Staff
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